Five Below, Inc. (NASDAQ: FIVE) has priced its initial public offering of 9,615,384 shares of common stock. The deal is a premium price at $17.00, well above the initial range signaled by the company. This is a teen and youth retailer with merchandise at $5.00 and under. Think of it as a pseudo-dollar store theme for hip teens and kids. Five Below is offering 4,807,692 shares of common stock, and selling shareholders are offering 4,807,692 shares of common stock.
Book-runners in the offering are Goldman Sachs, Barclays and Jefferies. Co-managers are listed as Credit Suisse, Deutsche Bank Securities, UBS Investment Bank, and Wells Fargo Securities. The underwriters also have an option to purchase up to an additional 1,442,308 shares from certain selling shareholders, and the company will not receive any proceeds from the sale of shares by the selling shareholders. Five Below estimates that it will receive net proceeds from the offering of approximately $72 million after fees and commissions.
Five Below intends to use the net proceeds from this offering to repay at least $50.0 million in outstanding debt, and it plans to use the remaining proceeds for general corporate purposes.
JON C. OGG